What legal remedies do I have to claim the interest I paid for when there was no written deed? – North Carolina

Short Answer

In North Carolina, a verbal deal to transfer an ownership interest in land is usually not enforceable because land transfers normally must be in writing. Even without a written deed, there may still be remedies, such as asking a court to recognize an equitable ownership interest (often framed as a resulting trust or constructive trust) or seeking repayment under unjust enrichment. The best remedy depends on what can be proven about the payment, the parties intent, and who holds title after the deaths.

Understanding the Problem

In North Carolina real estate disputes, the central issue is whether a person who paid money for an ownership share of land, but never received a written deed or written contract, can still claim that ownership share or recover the money paid. This question often comes up after the titled owner dies, when heirs or other relatives assert rights to the property, and the person who paid is left with no recorded title document to show the register of deeds or a buyer.

Apply the Law

North Carolina generally requires a written instrument to transfer an interest in real property, and the register of deeds records deeds to give public notice of ownership. When no deed was delivered and recorded, a claimant typically cannot rely on an oral promise alone to become a co-owner. However, North Carolina courts can grant equitable remedies in certain situations, including recognizing an ownership interest based on the source of the purchase money (a resulting trust theory), imposing a trust to prevent unfairness where someone wrongfully holds title (constructive trust), or ordering repayment when someone received a benefit that would be unfair to keep (unjust enrichment). A separate option, if an ownership interest can be established, is a partition action to force a sale or division.

Key Requirements

Proof of the payment and purpose: The claim usually turns on credible evidence that money was paid toward acquiring an ownership interest in the specific parcel (not merely as a gift, rent, or loan), and what the parties intended at the time of payment.
A viable theory that avoids the no writing problem: Without a deed, the claim often must fit an equitable remedy such as a resulting trust, constructive trust, or unjust enrichment rather than simple enforcement of an oral land sale.
The correct defendants and forum: When the titled owner has died, the claim may need to be asserted against the current title holders (often heirs) and sometimes through the estate process, in the county where the land is located.

What the Statutes Say

N.C. Gen. Stat. 41-10 (Quiet title) – Allows an action to determine and clear adverse claims to an estate or interest in real property.
N.C. Gen. Stat. 1-38 (Seven years possession under color of title) – Sets a limitation rule tied to possession under color of title; it sometimes becomes relevant when parties argue long possession or title bars.

Analysis

Apply the Rule to the Facts: The facts describe cash paid for a one-half interest, but no deed or written agreement and no record title in the public records. That makes a straightforward enforce the sale claim difficult, so the most common paths are (1) an equitable ownership claim based on the purchase money and intent, or (2) a reimbursement claim that focuses on the benefit conferred and lack of repayment. Because the titled sibling and spouse both died before any transfer, the claim also must account for who took title by inheritance and whether an estate was opened.

Process & Timing

Who files: The person who paid for the interest. Where: Typically in North Carolina Superior Court in the county where the land is located (real property actions are usually brought where the property sits). What: A civil complaint requesting the chosen remedy (for example, to quiet title and declare an equitable interest, to impose a trust remedy, and/or for unjust enrichment), plus a request for appropriate relief affecting title. When: As soon as practical after learning heirs or others claim ownership; timing matters because delay can create defenses and because estates and property can change hands.
Parties and service: The suit usually must name the current record owners and other persons asserting an interest (often heirs), and they must be served under North Carolina civil procedure rules. If an estate is open, the personal representative may be a required party for certain claims tied to the decedents obligations.
Proof and outcome document: The case often turns on documents and witnesses (payment records, text messages, prior statements, tax and improvement records). If successful, the court may enter a judgment declaring the claimants interest or ordering repayment; a judgment affecting title is then recorded in the register of deeds to reflect the outcome.

Exceptions & Pitfalls

It was a gift defense: Relatives may argue the payment was a gift to the titled owner, not a purchase of a one-half interest. Clear proof of the deal and intent is often the difference between an ownership remedy and no recovery.
Estate and heirship complications: When both the titled owner and spouse died, ownership may have passed through one or more estates. Missing or unknown heirs can complicate service, title investigation, and settlement options.
Improvements and taxes are not the same as title: Paying some taxes or placing a trailer on the property may help show use and expectations, but it does not automatically create ownership. These facts usually matter as supporting evidence for an equitable claim or to rebut defenses.
Adverse possession misunderstandings: Some disputes drift into adverse possession arguments. Without color of title or the right kind of possession for the required period, adverse possession may not fit the facts, and it can distract from stronger equitable or reimbursement theories.

Conclusion

North Carolina usually requires a written deed to transfer an ownership interest in land, so an oral agreement alone often will not put a buyers name on title. Even so, a court may still grant relief if the evidence supports an equitable ownership claim (such as a trust-based theory) or a repayment claim (such as unjust enrichment) against the current title holders or the proper estate party. The next step is to file a civil complaint in the Superior Court where the land is located before delay creates limitation and fairness defenses.

Talk to a Real Estate Attorney

If a person paid for an ownership interest in North Carolina property but never received a deed and heirs now claim the land, an attorney can help identify the strongest remedy and the deadlines that may apply. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.